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tv   Making Money With Charles Payne  FOX Business  December 30, 2014 6:00pm-7:01pm EST

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last shot at getting the policies they want. that's my two cents more. and that's it for tonight's willis report. don't forget to dvr the show. "making money" with charles payne is next. ♪ ♪ charles: i'm charles payne, and you're watching "making money." it's been a great year for the stock market, but i say 2015 will be even better, driven by a strong u.s. economy, higher wages, more business investment and even reasonable valuations. tonight, the five biggest tech trends in the market that you will make money from. we've got 'em for you. right now, straight to lori rothman on the floor of the new york stock exchange. lori? >> hi, charles. stocks retreated today with the dow losing 55 points and closing below 18,000 for the first time since december 22nd. the s&p caved ten points, snapping an eight-session winning streak. so investors weren't all that interested in taking some risks today, we saw a bid in u.s. government treasuries as well as
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an increase in the price of gold, the precious metal gaining $18 an hundreds, and that sparked a nice rally in metals and mining strocks, the best performers in the session. economic news didn't do much either, consumer confidence came in a little soft and case shiller home price index came in better than expected but at the slowest pace in about two years. one stock worth mentioning is that oil services company that does a lot of business in the canadian oil sands and australia which is why it's not a household name here in the u.s., but it's a great example of what's happening with tanking oil prices, the underbelly of this trend. the ceo lowering its earning forecast and suspending its dividend because big oil companies not throwing out that capex. with that, charles, back over to you. >> thanks a lot, lori, appreciate it. here to help us, the investment pros, jim freshling's back with us, love the tie, oliver porch,
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weren't you the single manager last time? did you get demoted? >> no, no, co-manager. charles: just double checking. [laughter] scotty nell hughes, still basking in the glow of being married, hitha herzog, not being right. and matt mccall. hey, guys, let's dig into the first real, real deal. this was a sloppy day. let's, you know, lori just talked about it from the very start. stocks sort of stumbled out of the gate, never gained any kind of foot, and when that last consumer confidence number came out, it was a little bit below estimates, and i've got to tell you, listen, it's that time of the year, most of the traders are out, volume's going to be low, but each session does tell us something, and i think what we're starting to see and probably will see is that the market needs a catalyst. the bias is to the upside, no doubt about that, but sort of looking for something to spring it forward. what do you think about that, jim? >> you know, three takeaways for
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me, the low volume you commented on, the energy sector got hit because saudi thinks it's the opportunity to challenge its rivals, and something i think is a quiet storm brew, but greece is back in focus. european equities were down, i think people have a memory of what -- how stressed europe was when they thought about greece. it's not that it's concerning me now, but watch that as we head into the new year. charles: just so viewers understand because i don't know how many people follow greek politics, they had three attempts to put in a president, it has not worked. the opposition party really making a lot of noise about tearing up this debt agreement. remember, they've been bailed out to the tune of hundreds of billions, not paying it back and going back to the sort of spending that got them in trouble in the first place and, of course, everybody's worried about that. plus, 80% of their bonds are held by foreign owners. what do you make of today's session? >> the tech utilities both had the worst day in 18 months, but i saw some profit taking. last week they've been doing the
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flows into u.s.-centric funds since 1992, biggest week ever, so maybe taking a breather, taking some profits. i don't see too much. volume 30% below the average today, so i'm okay with it. i just think it's a simple day. the strong bulls taking a breather and some profit taking. charles: here's what was intriguing, the action in gold. it's been quietly coming on, and i think part of this were comments by ceo of gold corp.. he says we've reached peak gold which means all the easy stuff in the world has already been found. they have mined it. last year, 2013, 2,270 metric tons pulled out of mines versus 386 tons in 1900. so that's a huge, huge change. and also, let's face it, gold might be just a little bit oversold. i think that the gold coin commercial, guys, and these dealers probably should forget about the fed. talk about supply and demand. hitha, gold corp. ceo, he's been saying this all year long, but
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he did make an interesting point about asian buyers hard to get -- gold is going to be hard to find, and the floor at 1200. do you think he might be right about asian buyers and gold finding a floor this. >> absolutely. i'm from india, i know what the demand is for gold especially around the holidays. two-thirds of the demand comes out of asia, china and india. and i think that demand is going up. we have to think about where china is in terms of the global economy. i think as that happens into 2015, demand goes up, we're going to see in this increase in demand for gold. >> i've been bearish on gold for a few years, i think we test $1,000 an ounce. if china's slowing, they're borrowing less. the chart to me is still ugly. yeah, we stopped the slide in november, but to me, if the u.s. dollar's going to go higher, why would you want to be in gold? charles: i want to take a look, i don't know if we have the chart here, but in a serious downturn on the chart, oliver, no doubt about it. look at this chart, you can also argue it made something of a
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reverse head and shoulders. the gold corp. said 1400. a lot of people would jump in for a trade like that. >> i think if you want to trade it, you're taking some risks still. i would wait for more of a confirmation here. i disagree with you, matt, i think at 1200 we're close to the bottom, and it's definitely rying to make a -- trying to make a bottom. that's not a whole lot, so i wouldn't jump into it. what you have to understand is on the supply and demand side, you know, a lot of the supply, i think it's somewhere around 70%, is actually recycled gold, so it's not new extraction from the ground. the other part to remember is that with all the etfs that focus on gold out there, really become much more of a trading vehicle rather than the historical hedging against inflation. so that's a different -- charles: right. and i think etfs in this particular case have done the metals a disservice. >> absolutely. charles: all right, guys, i've got to blow the whistle here. an interesting thing occurred
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during this great recession. fewer and fewer households have money invested in individual stocks, mutual funds, retirement accounts. i'm talking even 401(k)s or iras. even after the carnage of 2000, households did not dump out of the market. about 61%, look at that, hovered for a long time, but since the great recession it's been straight down and out, we're at 52%. here's the thing, as a percentage of total financial assets, this is the second highest level ever for stocks. most of that, of course, has to do with this amazing stock market rally. if you kept any exposure to the market, it's a big chunk of your net worth right now. housing is lower, gold is a whole lot lower. ironically, some might point to the very fact that we're seeing this as a reason to hate or at least not to trust this rally because in the past when we peak like this, 1936, '68, '70, 2000, 2007, they were also market peaks, but the real story here is the notion of being invested and staying invested.
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even right now, i've got to tell you, when it feels like you've missed the boat, still you should be in this market. and that brings us to our next real, real deal. i'm going to go back to you, oliver, because for me the moral of this story is stay in the market. some exposure, maybe not all, but stay in the market to some degree, and don't be afraid to buy weakness or strength. >> i agree. you need to be in the market. it's got to be part of your saving and investment plan, there's no question about it. one of the things that that statistic doesn't tell you is how many people, how many americans had to draw down on their 401(k)s, draw down on their iras and savings because of the crew sis. because this crisis was very different than past years. we have to recognize that there's more to it than just the lower number. but, yeah, absolutely. you've got to be in the market. don't worry about the short-term fluctuations. you've spoken about it many, many times, charles, you've got to have a longer-term outlook. >> the market has seen a 10% gain over the last year. >> we're at 14% --
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>> dividend yields, you would be insane not to stay in it long term. i mean, really -- >> well, here's one of the things though, right? because just recently, i think before he went to hawaii, president obama, scotty, some would say, well, what about blacks in the economy? blacks are doing terrible under the obama economy, and he referenced the stock market. listen, a lot of black people aren't in it, in fact, if you talk about bifurcation, this is one of the areas where you see a real, massive change. main street, for the most part, if they dump stocks out of frustration or a need for cash, they didn't get back in, that, so you've got a whole bunch of people completely missed this rally, and now they're in an awkward position. do they chase it or stay out? >> i think out of frustration. president obama, the numbers don't lie, and president obama's words do not back up what -- charles: they don't? >> i know that's a surprise to all of you. [laughter] the black median income are actually now one-thirteenth of what they were in 2010 which is
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down from one-ninth what they were of their white equivalents. one of the main reasons is there's not the job opportunities out there for them, especially considering president obama himself is about to sign six million new workers, taking away some of those jobs and opportunities -- >> if you look at the numbers, families that makeover $70,000 a year, lowe 30, 20% in the market. it's an income thing. >> but president obama specifically said he thinks that the black community is doing better economically, and that is not true right now, unfortunately. charles: and i tend to agree. i thought it was, you know, really ridiculous for him to point to the stock market. and having said that, i think there's a lot of families of all different colors who aren't doing well. but part of the reason, maybe are we disconnected a little bit, is it realistic for someone making 30, 40, 50,000 in your mind to be in the market? for me, you can be. i bought my first stock when i was making $10,000 a year, but it was something i really wanted to do, and i gave up a lot of other things. >> you can be, and you should
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be. the fact is the equity markets represent the greatest wealth generator of not just our time, but i think in the history of markets in which case you'll invest what you can, you put a process in place, hopefully a disciplined approach and, again, small investments and let the, let the appreciation over time benefit you. charles: all right, guys, everyone wants to get back in. maybe we'll pick back up on it, but i've got to blow the whistle and open up the next page from payne's investment playbook. it's that time of the year, end of the year, and what do we get? lists. the best song, the best commercial, the best this, the best that. i tell you what, what's going to be hot next year? those are the lists i like. mashable yesterday posted such a list for the tech world, and i think this thing was absolutely spot on. if you've seen in list in january this year, you could have made big money. anyway, first on the list, big data, okay? listen, i've talked about it a lot. now, this particular piece mentions intel and ibm and
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watson, their famous supercomputer. now, in addition to helping to understand market trends and consumer interests and intuition, the next thing for big data is to help businesses create new products and services. next on the list, artificial intelligence. you know i'm a little bit afraid of the robots. now here's the thing, going way beyond just mimicking humans, so actually thinking, fooling people. there's a mention of microsoft using a. i. speech and conversations for its next generation of skype. in fact, they say they'll be able to have realtime, bidirectional translations. robots. robots. robots and a.i. combined, that's going to be tough. but that's 100 years from now. right now we're going to see robots work side by side with their human counterparts. that's going to help break down the barrier of trust and then take us to the next level where they implement robots far deeper into the work force. then nanotechnology and material sciences. this is going to be used to deliver medicine on what they call a molecular level.
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really, really tiny. and an effort to advance cancer treatment, a whole lot of health challenges. this is real stuff, guys. it's going to save a lot of lives. being used for things like water proofing your cell phone. and then finally i thought batteries and wireless devices. listen, lithium ion batteries, the technology has huge drawbacks, and here's the thing, the race for better power sources, it's on. there's speculation the answer might come from batteries based on sodium-based complex metals. applied materials have been working on something like that, but keep in mind what are hot things for next year? the phones, tablets but also wearables, watches. these things are going to demand much more power. in fact, there's going to be an insatiable command for more -- demand for more power. all right, guys, forget about the coolest fashions and the best songs, this is a list everybody wants. this is the real, real deal. for all the hype in the tech space, there were a lot of flops this year; fire phone, google glass. but there's also a lot of excitement, and i think next
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year there's going to be even more. scotty, i go back to the last tech boom -- you're too young, you don't remember. [laughter] i used to get these magazines, right? red herring, it was this thick. wired, that thick. business 2.0, like the old manhattan yellow pages. these things were so, so big and filled with all kinds of promising technologies that never really came to fruition, but i think this time what we're talking about, all this stuff is real, and it's going to to havea major impact for people around the world. >> first of all, they were replaced by apps, so download the app -- charles: well, a lot of them went out of business. [laughter] >> 2014 was an amazing year for innovation. tony hawk was on a hoverboard, and we're talking back to the future 3 hoverboard. you saw something called wickedtricity which can charge any of our sources. one of my favorite things, the selfie stick was developed. how do you not live without that? charles: that's what i'm thinking though, something that
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jumped the shark. [laughter] ever since then gopro's down 20%. anyway, keep going. >> 3-d printing, this is something we were huge on when the winter and the spring came, and now it went from just 3-d printing, they can now print anything. all these things were developed in 2014, and i posted on twitter, everybody loves the great thing that hitha got for christmas which was the rumba, gotta have a rumba, that and the cure rig. charles: you guys keep working on that, you might be able to take it on the road. you remember when there was a new acronym every single day that you had to remember -- >> sure. charles: -- and the stocks were going public -- >> that's all you needed. charles: are we back in that whole humming prince's is the 1999 or is this time different? >> i'll go with little red corvette. [laughter] i think these are substantive companies with real product, and that's the difference between today and what we saw leading up to the crash of 2000.
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i think it's very, very different, but you want to focus on the fundamentals when you look at these stocks. make sure that they actually have revenues and earnings, that they're not overleveraged, and focus on those basics because that's what people lost touch with in '99. i remember they were just throwing darts, and anything that -- i mean, -- >>, remember that one? >> exactly. these are real companies with real products, as you were just pointing out, scotty, and i think that's very important -- >> a lot of these companies don't have any earnings yet. >> they're making revenue. >> i think you have to think outside the box because by the time it is on the cover of one of these magazines, it's usually too late. >> i disagree with that. there's still room. >> these products are great because people can use them. find that product that you say, you know what? if i can use it, others will as well. charles: let's talk about our last real, real deal, how to make money off this stuff. i'm going to just read my list, okay? data, you know, i've talked
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about that, da, ata, i still lie it. artificial intelligence, robots i like intuitive surgical which is up huge. you and i both like flammable for nanotechnology. i'm going to get it back. and that battery thing, i'll go along with applied materials. what do you like? give me three of these things that you think might be real and how to make money from them. >> oh, look, i like the list a lot. i think what ibm is doing with watson -- my tech guys at the company believe that's a game changer because it lets a person like me actually be able to advance ideas that are concrete into code without me being that technologically advanced. the stock i wanted to pick, actually, is pretty boring, but watch apple. why am i saying a that? it's not about wear ables, it's hearables. they bought beats, they also secured patents in terms of collecting data through the headphones. watch what they do with that in 2015. charles: one reason i like
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watson, it wiped that grin off ken jennings' face. [laughter] he was sort of a jerk. >> wig data's by -- big data's, versk, they work with all the big data -- charles: by the way, we have to chart flammable, that is an amazing breakout. i don't think it's too late to chase that one. >> and it's supposed to makeover $2 a share two years from now. this is making money, i love that. and robots, of course, i still like the etf, robo, it's the best way to play the sector as a whole. charles: all right, you've got the rumba, do you like the stock? >> i'm really into big data. you know why i like it so much? because jobs wise they are hiring like crazy, that industry. average income for a data scientist is $120,000. this is major. and i like data watch. this is a company still the same, on the same beat here. charles: right. >> a lot of these retailers are
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using it, big data, they're -- people who are in law enforcement are using this company to try to mine that day. and they're only using about 12% of that data. charles: oh, yeah. it's going to be amazing. we've got to go quick. give us a name that you really like. >> well, i'm going to agree with jim, i think apple, the integration -- >> you are so safe. >> the other part is microsoft. don't forget about microsoft, the work they're doing with the cloud and other technology is huge. charles: by the way, maybe in a week or so microsoft will retest its all-time high. up next, the payne's pros are going to update investment ideas from the show that have been in the news the last week. i've got two that are down big. remember, though, no pain, no gain. we'll be back in three minutes to make you money. ♪ ♪
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charles: hey, guys. great tweets. keep them coming. time now for no payne no gain. that's my favorite part of the show. it's where we look at my ideas. these are things. we don't cherry-pick them. big news. first up is green mountain. i mentioned this a whole bunch of times. most recently in november. down 15% from that high. the company is giving a warning. some firm came out and said they won't do as well this las year. none of that is new. i still love it. buy the dips. i'm looking for a target of $180 or better. yelp, like a lot of these high fliers, hammered pretty good. down 16. mkm came out. put a buy on it. their target is 86. i think they may be low. i think yelp will be a
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grand slam. finally one stock that has been a grand slam f1 networks. up double dingles. digits. i still love it. near the all-time high. i think you can get it to 165. from f you're not in those three stocks, i think they're all buys. matt, i want to talk about sherman williams. benefits from the strong dollar. this stock has gotten stronger than the dollar, 23%. matt: it has done well with low oil prices. big input cost. middle of december, lowered their guidance. buy on any weakness. charles: why is it going up? matt: input costs are going lower. it's one of those old ones that keeps going. charles: well, it's 2.60,
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everyone loaded up. all right, jim be you loved jetblue. we will say they flew home all the relatives of police officer liu murdered in new york. they were going to make the seats smaller. >> that's one of the reasons i like them. bring your own device. they're rolling out this idea with the belief -- you already bring a device on the plane, if they can replace and get their old screens, they'll save on maintenance costs. they'll cheapen the experience -- charles: does that mean the stewardess won't get mad at me. keep my device on. toyota, you loved that in october. autos have been booming. this is booming more. 8% up. >> yeah, i love it. makes me nervous, they're going to miss expectations in china. that makes me nervous,
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but demand in the united states, huge. charles: is that because of the beef they've had. i know there's been a little bit of consumer boycotting on both sides. >> there's slowing. china has slow growth. charles: you have to rock. real quick oliver, in october, dsw, where scottie buys her shoes. by the way, you won the shoe contest. >> still holding. we think it's a good stock. charles: you're the long-term buy and hold guy. >> look, it's a great portion for a core holding. and the earnings keep on chugging along. good products. charles: my wife likes that story. i think it's a buy too. up, next, revenge of brick-and-mortar. we'll talk about the war between walmart and amazon. i have to tell you, it's knock down, drag out stuff. you won't believe who is actually winning right now. tweet me. tell me what you think about this. the markets, getting back into it.
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brick-and-mortar survivors, how you can make money in it. we'll be right back. ♪
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>> all right, guys. revenge of the brick-and-mortar. now this war between walmart and amazon. this has been real serious, knock down,
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drag out stuff that's seen swings of outrageous proportions. the past five years, amazon has simply lapped this brick-and-mortar rival. you know what, that has not been the case this year. walmart has gotten his act together. you're looking at these charts. check this out. walmart coming on strong. while that sort of top line growth that amazon had sort of charmed wall street with all the time, the wall street darlings are no more. wall street is insisting on it. some are saying that wall street will never have the same relationship with amazon, that favorite nation status unless they find a way to hit the bottom line. in the meantime, walmart may have found a thing or two, now it has the edge. walmart may win the public relations war. consider this, we were talking about these big trends. walmart is hiring thousands. amazon is hiring robots. the real key is this
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omniaccounting that hitha wants to tell us about. all right. walk us through what omnichannel is. why is it helping walmart and others beat these, you know, these guys who are supposed to put them out of business? >> i'm so excited to talk to you about this. charles: that's why i'm sitting on the floor -- >> it's a term that the chairmen of macy's came out with in 2008. retailers use this technique to hit consumers from all angles. in the past, people would go into stores and go shopping. walk into the brick-and-mortar and buy something. now they hit them through catalogs. brick-and-mortar, online through their computers, through their mobile devices and other ways. this 360 approach, that is how they're getting the sales now. they realize back during the recession, no one was going into the stores anymore. no store traffic. they realized the
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consumer was super mobile. that's what omnichannel retailing is. you're seeing the success of these once stodgy brick-and-mortar stores like walmart really amp up. walmart, to your point, hasn't gotten their game together until this past year. this year especially. we saw their same store sales lag. charles: but the stock is not lagging. they're coming on strong now. now we're seeing these internet companies open up a few stores. matt: this is a win-win. it will increase the sales. more sales, but also lowers expense. you're paying to acquire that customer. if you're acquiring them in brick-and-mortar, you're paying to acquire them via the web or app. this is done once. they're getting you for a cheaper price and they're selling you more. companies have to do this. charles: these guys bother me all the time. >> i love it. this is where data mining comes into play. instead of spending your money to influence all these people, you can target to the customers
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you want to reach and make sure they're coming to your store. instead of spending advertising dollars and wasting them. >> people don't want to get the emails. they can eliminate those people through the data mining and hit you up in the stores, for example. charles: hit me with a catalog. >> i like looking at stuff in the email. my wife likes the catalogs. getting hit by both, they're getting double the sale, if i'm looking at email and my wife is looking at a catalog, i will say, no, i'm not buying this. >> remember those big sears catalogs. restoration hardware. >> they're down because more than likely people will get their email. see what's on sale -- charles: i like getting mail. that's the only mail i get. now there's other brick-and-mortar survivors out there. the question, how long? gamestop. best buy. barnbarnes & noble's.
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staples. some of these companies have fooled a lot of companies. couple of years ago best buy was almost sold in the teens like 12, 14 bucks. would someone watching the show buy any of these stocks? >> i'll recommend staples. it's a combination of brick-and-mortar and what they're doing online. staples had to make its money by closing its doors and cutting expenses. sure it's known. they were the ones who pushed for the office depot merger. it's a consolidation with office depot. i like staples. charles: that's contrarian. it takes a little nerve to go with staples right now. >> i personally wouldn't touch with any of them. staples is probably the best out of the four you mentioned there. again, very risky and there's better placed to put your money in 2015. >> you're smiling? >> you want to talk about omnichannel marketing. barnes & noble's and the booksellers had to take this on. borns anbarnes & noble's had to
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step up and step up their online sales to compete with books. charles: listen. i know everyone is getting drunk tomorrow. did you and jim start already? did i miss something in the greenroom? >> the barnes & noble, it was just as important to be making the bookseller lists -- >> it's the margins on those books. they're not making that much money. amazon is pricing them out on those books. amazon is also -- not just in the book business anymore, it's providing a product for everything. charles: is there a name you like? >> you'll laugh. but i like best buy. i think it's great. i think they really have this restructuring in. the new ceo restructured. everything. they're not just focusing on tvs and technology, home electronics anymore. they're looking at ipads and cell phones. that's what they're selling. that's where they're
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making their sales. charles: their stock turned around. i just paid 300 bucks and you want to search my back. matt: i like another brick-and-mortar. men's warehouse. joseph a. banks. i saw a commercial, buy one suit and get three free. and what about the millennials trying to get jobs. they can't afford -- >> do they guarantee you'll still look good? charles: they should have took him on as a spokesperson. i would have to smoke 20 packs of cigarettes a day. i'll put all these names on twitter later on. because we have a group here that a lot are gutsy. contrarian plays. how you make money. send us your questions. lot of great tweets. we love to answer them live. tweet me cvpayne. or like me on facebook.
6:38 pm all right. naysayers, well, they've been talking about this market being overvalued and the remnants of 2000. a major difference between this rally and that rally and why you should continue to be an investor in this market going into next year. a lot of money to be made. stay right here. we'll help you do it. ♪
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charles: all right. now, there may be similarities between this rally and that tech bubble rally. there's some differences. the word quality. the leadership is amazing. we'll explain when we come back.
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announcer: it's time for upon further review. charles: all right, using evaluation method that's designed by robert. the stock method if you're looking at it it's extremely overvalued. in fact, it's only traded this high on one occasion. that was in 2000. it was a lot higher. but according to his work, it's overvalued. i think there's better ways to compare this market, particularly to the tech rally. now lots of stocks are removed every single year from the s&p 500. and, in fact, all these indices. when you think you're buying and holding the stocks, you're not. the majority of these are removed. they're delisted because of merger activity. some are dumped because
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they're distressed company. 380 companies were dumped because the businesses went bust. see that chart, on the upslope into the crazy tech rally. that's when there was a whole lot of junk being replaced by more junk. still the market was going higher and higher. look at the other part of that chart right now, guys. it's the exact opposite threat. it's being run by companies that don't have to be replaced. there are similarities to this market rally to the tech bubble. others as well. upon further review, there's a lot different this time around. i know it's famous last words. a lot of people missing this rally say it reminds me of the tech bubble. >> well, i disagree. so i think there's three very critical things very much in front of us that are very different. number one, low interest rates. and they're here to stay for quite some time. number two, pretty
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strong economic growth, especially in the u.s. let's not forget third quarter gdp 5%. fourth quarter in the 4% range probably. and number three, we've had a tremendous amount of margin expansion as a result of cost cuts from these large companies. that's beneficial. i think you have to focus on that. it's no longer just vapor. charles: one of my favorite things to look at is margin expansion. when margins go there had it way, stocks go this way. you don't have to worry about engineering, start up with your operating margins, that will give you a sense of how margins are going. >> i would also add, we're not talking about this new economy. this vapor ware that you were describing. companies are real. we're looking at their revenues and margins. great substance. this is not like the 2000 tech bubble. >> they're sitting on a lot less debt. much more leverage where
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the companies -- much less debt. so i'm not saying we won't have a pullback. but i think the magnitude of that pullback when it comes will be less severe because the companies are better positioned financially. 10% versus maybe a 30% that would have happened charlton thihappened. charles: this time is different. can we say that with confidence? >> absolutely. again, i look at the fundamentals. i look the ayou will the companies that reported out earnings. most of them beat out expectations. we haven't seen that in a long time. charles: i'm sorry. >> the thing is, whether these companies are being forced to or they're choosing to, they're reinvesting in themselves. putting off because they were in a downturn economy. that's the best part. companies are investing into themselves and expanding instead of -- charles: that will be a greater theme going on. i think the financial engineering part is fine. i love it. i want to see more capex
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spending. also because these durable goods are old. it's time they replace them. they have the cash to do. up, next, my stock recommendation for the day. perfect for the holiday. this company has a movie kiosk. that's not the game changer. gift cards. you have one, don't know what to do to it, these guys have the answer. it's also something that should make you money. we'll be back to do just that. ♪ i'm only in my 60's.
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i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan.
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we love to travel -- and there's so much more to see. so we found a plan that can travel with us. anywhere in the country. [ male announcer ] join the millions of people who have already enrolled in the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations. remember, all medicare supplement insurance plans help cover what medicare doesn't pay. and could save you in out-of-pocket medical costs. call now to request your free decision guide. and learn more about the kinds of plans that will be here for you now -- and down the road. i have a lifetime of experience. so i know how important that is. charles: all right, guys. we'll get down to it right now. make you some money. my stock suggestion is outer wall. i had this once before
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on the show. extraordinarily volatile. they're known mostly for those red kiosks where you can rent a movie and video game. their coin star business has been reinvented. you used to put the quarter in, you got lucky, three or four quarters back. mess around them when you go to the diner. but now the whole thing is re invented. they'll take the unused gift cards, and you get cash in return. it has slow top line. but 66,000 of these kiosks, and a lot of people still use them. in fact, a commercial on tv the other day touting an online movie, some on demand movie and they said we'll get it before red box. these guys are a competitive alternative. the stock has been on an absolute tear. taking out the volatile. dvds a buck 50 from a buck 20.
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video games from two bucks to $3. driven by that coin star unit, margins will blow your mind. 28.7%. after blowing out the quarter, they hiked their earning estimates. $7.97. that will be too slow. on that note, there are 300 -- what does that mean? it means that big boys out there are trying to crush this stock. this think it goes down. in the meantime, i want it to go to 86. huge outsides. the volatile is there. if you're not used to risk, it's not for you. i like it as a trade and longer term. all right, i defy anyone watching this show to name a company that they will give you cash for a gift card. matt: cracker barrel.
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charles: let's see. how do you spell that. name another one. no. cracker barrel on the list. name a retailer. name a gift card you got you don't want. >> honestly best buy. sorry, hitha. >> go to the kiosk, get you cash for that. >> i'll go against the big boys. i'm completely on board. they hike the prices, which i like. they're trading at nine times next year's earnings. peg ratio is .66. they're expected to buyback 20% of their outstanding stock. you can't find a better stock on all cylinders in my opinion. >> this company has a track record of failed ventures. that's why people are still saying -- charles: you throw your cell phone in the machine. that was ridiculous. >> what's working, they have huge international expansion capabilities. i do like the stock. charles: everyone -- name a company, name a retailer, if you have a gift card that you don't want to use, these guys will give you cash for it.
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the world is watching the rescue and recovery effort of the downed airasia flight. the inevident i believe has happened. companies are pushing for -- why blaming capitalism is wrong yet again. that's next and you don't want to miss it. ♪ these ally bank ira cds really do sound like a sure thing, but i'm a bit skeptical of sure things. why's that? look what daddy's got... ahhhhhhhhhh!!!!! growth you can count on from the bank where no branches equals great rates. if aunder a microscope, put we can see all the bacteria that still exists. polident's unique
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so ally bank really has no hidden fethat's right. accounts? it's just that i'm worried about you know "hidden things..." ok, why's that? no hidden fees, from the bank where no branches equals great rates. >> let's judge airasia by the way they handled. this they've never had a crash and handled this letter perfect. one thing about tony fernandez,
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airlines are partnerships with countries that wouldn't have an airline like that. you're dealing with a fine person and airline that had bad luck recently. charles: earlier this morning an interview with mike boyd on opening bell. the discovery of debris from the airasia flight 8501 is going to now start to take the story into a new phase. obviously, we're in the mourning phase as expressed by the company's ceo tony fernandez. this phrase stuck out in my heart. before this tragedy, this airasia story was about a bold gamble. tony fernandez bought the airline from the malaysian government for 29 cents. 29 cents, assumed the debt.
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they were old 737's and 250 employees. this is this year's chart, the stock flying high, no pun intended. before the tragedy, it started to fall off right there. the stock started to peak in 2011. over the past 24 hours, it's this chart and other things that have critics say blaming the airline, it is a legend in the airline industry, they have stretched the boundaries of what's possible. redefined a lot of rivals. they have the lowest unit cost. they're a low-cost airline, the world's lowest unit cost. 100% of fuel hedged for the next three years, that is amazing, turnaround time for planes, just 25 minutes. so that means that average utilization rate, 13 hours a day. crew productivity, three times
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that of their rival, malaysia air. i guess we knew this was going to happen at some point. jim, the company is ultrasuccessful. i don't know if people realize how stunning they are. the plane land, clean it up, and put it back in the sky. if you listen to what mike boyd said, to get this travel in that part of the world is opening up the rest of the world, it will mean economic success for everybody there and the ability to achieve things that they weren't able to before. nevertheless, within a week, the top story will be the criticism of capitalism. >> the aviation industry in general has done an outstanding job, considering passenger safety has doubled. it doesn't mean all parts of the world are equaled. we have seen three tragedies in the southeast asian area. is it bad luck? there are trends going on in the exponential growth in the
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region has not been met with the infrastructure needs. the mechanics are stretched, pilots are stretched, and the issue -- charles: would you say we pull up the 10-year chart again, see it peaked three years ago, the rest of the market is up. the stock is drifting. do you think they were driving so hard. all about the bottom line, they overlooked trading or something that happens with a young company. >> i think in the u.s., the dmoiment training pilots and then the commitment to training industry far exceeds any other country, and i think this country was particularly stretched as the area is stretched. what's it doing for middle class? the demand for travel is unbelievable. >> if an airline industry, the tragedy is much higher than with internet companies. >> i know one of the favorite topics is regulations, airlines and mass transportation do require regulations, and it's well known in particular in southeast asia, those regulations are relatively weak
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and allow for policies and procedures to put people in danger. >> got to leave it there. we should have started this conversation earlier. appreciate you watching you every night 6:00 p.m. if you can't see the show, dvr it. i'm going fill in for maria tomorrow morning, opening bell. lou dobbs next. lou: good evening, everybody, breaking news, we may not know why airasia's 8501 disappeared from radar, but know that it crashed, and we now know where. a three-day search-and-rescue operation turned into a massive recovery operation after aircrafts and ships found debris and bodies floating in the java sea. several bodies and wreckage discovered off the coast of borneo, dashing the hopes of families and friends of those oboard the indonesian and malaysian owned jetliner. senior foreign affairs correspondent greg palkot is in


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